MGM 301- Exam #1 Study Guide

Chapter 1- Creating Customer Relationships and Value Through Marketing
Marketing: the activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, it’s stakeholders, and society at large - more broad than advertising and selling - stresses the importance of delivering genuine benefits to customers
To serve buyers and sellers, marketing needs to:
1.) discover the needs and wants of prospective customers
2.) satisfy these needs
Exchange: the trade of things of value between buyer and seller so that each is better off after the trade
- many diverse factors influence marketing activities
(relationships with customers, shareholders, suppliers, environmental forces)
4 Factors for Marketing to Occur 1. Two or more parties (individuals or groups) with unsatisfied needs 2. A desire and ability on their part to be satisfied 3. A way for the parties to communicate 4. Something to exchange
Meeting Consumer Needs with New Products 1. Focus on the customer benefit 2. Learn from the past
Consumer Need: occurs when a person feels deprived of basic necessities such as food, clothing, and shelter
Consumer Want: a need shaped by a person’s knowledge, culture, and personality
Market: people with both the desire and ability to buy a specific offering
Target Market: one or more specific groups of potential consumers toward which an organization directs its marketing program
The 4 P’s of Marketing Product: a good, service, or idea to satisfy the consumer’s needs Price: what is exchanged for the product Promotion: means of communicating between seller and buyer Place: means of getting the product to the customer
- these are all elements of the “marketing mix,” the controllable factors that can be used to solve a marketing problem
Environmental Forces: forces in a marketing decision involving social, economic, technological, competitive, and regulatory forces, these are uncontrollable examples: consumers wants and needs, changing rate of technology, economic status, government restrictions, actions from competitors
Customer Value: unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and service at a specific price
- loyal and satisfied customers are likely to repurchase over time
Relationship Marketing: linking the organization to its individual customers, employees, suppliers, and other partners for their mutual long term benefits
How Marketing Became So Important
Market Orientation: focuses the organizations efforts on continuously collecting information about customer’s needs, sharing this information across departments, and using it to create customer value
Customer Relationship Management (CMR): the process of identifying prospective buyers, understanding them intimately, and developing favorable long term perceptions of the organization and its offerings so that buyers will choose them in the marketplace
Breadth and Depth of Marketing
Who Markets?: everyone markets, from firms to politicians
What is Marketed?: goods, services, and ideas
Who Buys and Uses the Marketed Goods?: ultimate and organizational buyers Ultimate: the people who use goods and services purchased for a household Organizational: manufacturers, wholesale buyers, retailers, and gov. agencies
Who Benefits?: consumers who buy, organizations that sell, society as a whole
How Do Consumers Benefit?: marketing creates utility, the benefits or customer value received by users of the product (form, place, time, and possession) Form: the production of the good or service Place: having the offering available when consumers need it Time: having it available when needed Possession: value of making an item easy to purchase through credit cards or other financial agreements

Learning Objectives